A car has crashed into your home or business. Now what?
This may sound like a crazy topic… until it happens to you. A car has crashed into your home or business. Now what?
First, take a deep breath. Everything should be okay.
Second, my advice is to contact a good attorney immediately, because timing matters with these claims. If this has happened to you, and you want to talk to someone at Schinkai Law, use our Contact page and we will follow up. We frequently handle these types of cases and work on a contingency basis, which means we only get paid if you recover.
The Basics & What To Do
When a car crashes into a building, the at-fault driver's auto insurance usually pays for structural damage, through a type of insurance called Property Protection Insurance (PPI). This should cover up to the first $1 million in damages and is a mandatory part of every Michigan’s driver’s no-fault coverage policy.
Where this gets tricky is if that's insufficient or the driver is uninsured, then your homeowners insurance becomes the payer, covering repairs minus your deductible, with a potential subrogation process to recover costs and your deductible. Damage to belongings inside might fall under your personal property coverage, and you'll need to file claims with both the driver's insurer and your own homeowners policy, often starting with your insurer to get things moving quickly.
Later, working with your attorney, you may be able to sue the at-fault driver for your damages, but it depends on a lot of factors, including the likelihood that you would be able to recover damages from them.
Who Pays & How It Works
Driver's Auto Liability: The at-fault driver is responsible for damages; their auto insurance typically covers the building repairs up to the contractual limits (usually $1 million).
Your Homeowners Policy: Your policy kicks in if the costs of repairs and damages are over $1 million, or if the driver was uninsured at the time of the crash.
When Your Homeowners Kicks In: If the driver has no insurance, not enough insurance, or you want repairs started immediately, you file with your own homeowners policy.
Subrogation: Your insurer will pay you (minus your deductible) and then may seek reimbursement from the at-fault driver's insurance company, returning your deductible if successful. This can be tricky though and varies insurance company to insurance company.
Steps to Take
Assess Damage & Safety: Ensure everyone is safe and call emergency services if needed.
Document Everything: Take photos/videos of the car, damage to the building, and any damaged personal items. As an attorney, this is where I start to assist my clients.
Get Repair Estimates: Obtain quotes from qualified professionals for the structural damage. You should also have them stay in touch with the attorney to make sure that your claim is properly handled.
Cooperate with Driver's Insurer: Your attorney will open a claim and provide details to the at-fault driver's auto insurance company.
Contact Your Insurer: Your attorney will also file a claim with your homeowners insurance company, if needed.
Statute of Limitations
Under Michigan law, you have one year after a crash to file a claim, and if needed, file a lawsuit against the at-fault driver for a PPI claim.
Thankfully, when working with an attorney, you can usually resolve these matters without a lawsuit.
If your home or business has been the victim of a car crash, do not hesitate to contact Schinkai Law by clicking this link.
